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PPI deadline imminent - FCA guidance to firms

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PPI deadline imminent - FCA guidance to firms

The Financial Conduct Authority (FCA) PPI deadline of 29th August 2019 is fast approaching. There has been widespread advertising both by the FCA and claims management companies advising consumers of the impending deadline. As such it is anticipated that the volume of claims submitted shortly before the deadline could be considerable. The FCA have issued guidance to firms in relation to how they should prepare for the upcoming deadline.

The PPI complaints deadline was set on 2nd March 2017 by the FCA. The deadline was put in place as an attempt to prompt people who have potentially been mis-sold PPI into taking action, rather than putting it off or simply avoiding it all together. The FCA have been running a two year campaign with the goal of helping consumers to decide whether they wish to act about their PPI before the deadline.

The latest FCA figures show that more than £35 billion in compensation has already been paid out by lenders. Additionally, the FCA has told potential claimants that Britain’s banks still have £10 billion set aside and available to pay successful claims.

What is the FCA’s guidance to firms in light of the deadline?

  1. When firms receive PPI enquiries that have positive prospects, they should include the deadline date within their response. This is to ensure the fast approaching deadline is sufficiently highlighted and fully acknowledged by people considering making a complaint.
  2. Firms should treat postal complaints arriving up to five working days after the deadline as being in time. This is to allow for any delivery delays that may occur.
  3. The firm’s phone lines should be open late on 29th August to ensure any last minute complaints are not discarded despite still being within the midnight deadline. Any voicemails that accumulate on this day are to be treated as in time, in addition to accepting calls made on 30th August.

The deadline only relates to the start of any new claims. If the complaint has been submitted and received by the lender within this time frame, it should be investigated accordingly.

If you require advice in relation to the handling of PPI claims or the application of the FCA’s guidance, contact our specialist FCA lawyers on 01616 966 229.

By Katie Wilson, student